Summary
Highlights
'Latent defects' are hidden flaws not apparent on visual inspection. 'Material defects' are significant flaws that must be disclosed to potential buyers. A 'special assessment' is a charge imposed by authorities for public improvements.
A 'listing agreement' is a contract between an owner and a broker to market property for sale. The 'habendum clause' in a deed defines the ownership conveyed. A 'deed' states property ownership and represents its transfer.
This video offers 250 real estate vocabulary terms in a flashcard format, designed to help viewers prepare for and pass their real estate examination. It promises a comprehensive list to ensure success.
The video defines 'agency' as a fiduciary relationship between an agent and a principal (client) in real estate transactions. 'Equitable title' refers to a buyer's beneficial interest in a property upon signing a purchase contract, allowing possession while legal title remains with the seller. A 'general warranty deed' provides the highest level of protection to the buyer, guaranteeing clear title free from encumbrances.
'Negative amortization' occurs when a loan balance increases due to unpaid interest exceeding principal payments. A 'prepayment penalty' is a fee for early mortgage repayment, compensating the lender for lost interest. The 'annual percentage rate (APR)' reflects the total borrowing cost, including interest and fees like prepaid interest points.
A 'dual agent' represents both buyer and seller in the same transaction, which is heavily regulated and restricted in some states. A 'jumbo mortgage' exceeds conforming loan limits for higher-priced properties. 'Puffing' involves exaggerated statements about a property's appeal, which is not illegal unless it constitutes misrepresentation.
A 'variance' is special permission to deviate from zoning regulations. 'Abandonment' is giving up property ownership through lack of use or maintenance. A 'master plan' is a blueprint for development, land use, and zoning.
Elements of a 'valid contract' include offer, acceptance, consideration, intention, legal purpose, and capacity. 'Default' is a borrower's failure to meet obligations. 'Probate' is the legal process of distributing a deceased person's estate.
'Actual eviction' is physical removal of a tenant. 'Constructive eviction' occurs when a landlord makes a property uninhabitable. 'Latches' is the principle of losing rights if unreasonably delayed. 'Trade fixtures' are business-related equipment that can be removed by tenants.
The 'Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)' addresses hazardous substance cleanup, establishing the 'Superfund' program. 'External obsolescence' is a reduction in property value due to external factors like neighborhood changes or environmental issues.
The 'Federal Housing Administration (FHA)' offers mortgage insurance and sets loan criteria for affordability. The 'prime rate' is a baseline interest rate for highly creditworthy borrowers. An 'adjustable-rate mortgage (ARM)' has an interest rate that fluctuates based on market conditions.
'Fee simple absolute' is the highest form of property ownership. The 'PETE' acronym stands for Police power, Eminent domain, Taxation, and Escheat, representing government powers over real estate. The 'Torren system' is a land ownership registration method where the government guarantees title accuracy.
'TRID' (TILA-RESPA Integrated Disclosure) requires lenders to provide clear loan cost disclosures. The 'Americans with Disabilities Act (ADA)' prohibits discrimination against disabled individuals. An 'easement' is a legal right to use another's property for a specific purpose.
'Tenancy in common' allows co-owners to transfer their share, with a deceased co-owner's share going to heirs. A 'lien' is a creditor's claim against property for unpaid debt. 'Private mortgage insurance (PMI)' is sometimes required for conventional financing without a minimum down payment.
'Steering' is the discriminatory practice of guiding homebuyers based on protected characteristics. The 'Sherman Antitrust Act' prevents monopolies and anti-competitive practices like price fixing and market allocation. 'Blockbusting' is instilling fear in homeowners to sell due to changing demographics.
'Capital gains' are net profits from selling an asset like real estate. The 'millage rate' is a tax rate for property taxes. 'Improvements' are alterations or repairs that substantially add to property value.
'Commingling' is mixing client funds with a broker's personal funds. 'Conversion' is unauthorized use of trust account funds. 'Fiduciary duties' are legal and ethical obligations of an agent to act in the client's best interest.
'Latoral rights' allow use of static water bodies like oceans. 'Riparian rights' allow use of flowing water bodies like rivers. 'Joint tenancy' means all owners jointly own the entire property with the right of survivorship.
'Amortization' is the gradual repayment of a loan over time. 'List pendens' is a notice of a pending legal action against a property. A 'deficiency judgment' is a court order allowing lenders to pursue remaining debt after a foreclosure.
'Market value' is the estimated price property would sell for. 'Functional obsolescence' is a reduction in desirability due to outdated design. 'Economic life' is the estimated period a property generates income and remains viable.
A 'buy down' is an upfront payment to lower a mortgage rate. A 'package mortgage' finances both real and personal property. 'Hypothecation' is using an asset as collateral for a loan.
A 'legal description' accurately identifies property boundaries. The 'Clean Water Act' protects water resources. A 'certificate of occupancy' certifies a building complies with local regulations for occupation.
A 'section' is one square mile, 1/36th of a township, equivalent to 640 acres. A 'township' is a geographic area six square miles containing 36 sections. 'Tenancy in severalty' means a single owner has exclusive rights to the property.
'Closing' is the final stage where documents are signed, funds exchanged, and ownership transferred. 'Reconciliation' is analyzing and adjusting valuation approaches to estimate property value. 'Earnest money' is a deposit demonstrating serious intent to purchase.